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Data is the currency of the modern world. Whoever has the most information, has the best foundation to grow their business. And CRM software offers a deep pool of data that companies can use to improve their overall performance. Since you’re reading this text, there’s a good chance that you’re on the lookout for any clues that might suggest data mining in CRM is good for your business. Needless to say, you’ll find them all in this article. Keep reading to learn why data mining in CRM is beneficial for your moving company.
What is data mining?
Before we delve deeper into the pits of our today’s topic, let’s consider the terms you’ll find on the surface: data mining and CRM. First, we’ll introduce you to the definition of data mining:
- It’s the process of coming up with helpful patterns and relationships in greater volumes of data. Data mining utilizes statistical algorithms and models in order to discover trends in the existing data warehouses.
What is CRM?
Customer Relationship Management (CRM) represents strategies that businesses utilize to handle interactions with (potential) customers. Also, CRM helps companies streamline processes, shape customer relationships, boost sales/increase profits, enhance customer service, etc. Usually, when folks mention CRM, they actually refer to software – customer management software for movers.
And now that we’ve defined the two terms we’ll be using quite a lot today, let’s see how well they work together.
Data mining in CRM
Even though we’re talking about something you’d call a pretty fresh technology, companies from various industries have invested in data mining techniques in CRM. That’s because the aforementioned techniques help your company find and select all the relevant info. Also, companies mostly use them to obtain a clear view of the so-called customer life cycle. What’s a customer life cycle? It’s the whole from identification to attraction to retention to the development process. The more data that you’ve got in your databases, the better and more accurate the models will be.
We start by looking into the three key techniques of data mining:
- Predictive Modeling
- Descriptive Modeling
It goes without mentioning that CRM in the age of data analytics allows businesses to do a lot of helpful stuff, to phrase it in the simplest manner. That being said, let’s consider the ways in which data mining in CRM is used today.
What can you do with data mining in CRM?
Without further ado, let’s see all the applications of data mining in CRM!
#1 Product customization
Businesses use data mining in CRM to customize their products in accordance with the needs of their customers. How’s this done? They simply have to use the techniques mentioned above to predict which features will have to be bundled in order to meet customer demands & wishes.
#2 Basket analysis
You’re also able to use data mining in CRM to figure out which products your customers tend to purchase together. Having this information will help you improve stocking, store layout strategies (navigate your customers), and promotions.
#3 The subtle art of sales forecasting
This one’s pretty obvious, but inspecting time-based patterns will help your company make re-stocking decisions. In other words, you’ll be able to see what kind of product are your customers falling for and predict further customer behavior.
#4 Fraud detection
Here’s another thing data mining in CRM will assist you with. Anyway, by inspecting and analyzing past transactions that later on turned out to be faulty and fraudulent, you’ll be able to take certain precautions in order to prevent such a scenario from happening once more. There’s no need to emphasize the fact that banks and various other financial institutions plentily reap benefits from this feature. That’s because they’re able to greatly reduce the number of bad debts.
#5 Market segmentation
Of course, when marketing a certain product, you’ll want to avoid targeting customers that are simply not interested in whatever you’re trying to sell them. By using data mining techniques you’ll have a better notion of just which potential customers are actually interested in the purchase of the thing you’re selling or the service you’re offering. This will boost your efficiency and most probably result in the ROI you’ve desired from the beginning.
Speaking of offering services and everything, if you’re wondering how to boost your ROI and you’re heading a moving business, keep in mind that utilizing moving company client relationship management software is never a bad thing to do.
#6 Building customer profiles
This is sort of a continuation of the previous paragraph. Anyway, by utilizing the method we’ve mentioned too many times here, companies will be able to create profiles of ideal customers based on their demographics, tastes, buying behavior, etc. Your marketing team won’t have much trouble coming up with the right campaigns and various promotional offers. This will, eventually, lead to improved productivity, optimal allocation of resources, and other things that sound similarly nice.
Another thing you’ll be able to predict with data mining in CRM is the number of your customers who’ll make warranty claims. Also, you’ll provide yourself with a number that tells you the average cost of the aforementioned warranty claims. This will, of course, help you manage your company’s funds in the best way possible.
#8 Predictive life-cycle of your customers
We’ll be very short here. Last but not least, data mining in CRM will enable you to predict the so-called life-cycle of each customer that reaches out to your company. That way, you’ll have all the necessary info to service each one of the steps in a proper manner. So, yeah, simply obtain assistance in the form of moving company leads management and you’ll be good to go!
The bottom line
Okay, folks, so that’s about all there’s to say about data mining in CRM improving your company’s business. As you could’ve read, there’s simply no reason to miss out on this fantastic opportunity to enhance your chances of making quality, long-lasting relationships with your customers. Unless, of course, you don’t care about that kind of thing.